Google to ban ads for payday lenders

Starting July 13, Google is banning advertisements for payday loans and some related products, a move designed to protect users from "deceptive or harmful financial products."

In a post on the Google Public Policy Blog, the company said it will no longer allow ads for loans where repayment is due within 60 days of the date of issue, and in the United States, will ban ads for loans with an APR of 36 percent or higher. The company made the decision after conducting extensive research, and the new policy will not affect companies offering mortgages, car loans, commercial loans, student loans, or revolving lines of credit. Google also revealed that in 2015, it disabled more than 780 million ads "for reasons ranging from counterfeiting to phishing."

In the U.S., the $38.5 billion payday-lending industry works with roughly 12 million customers every year, offering small loans at interest rates that can exceed 300 percent, The Wall Street Journal reports. The sector's main trade group, the Community Financial Services Association of America, is upset by Google's decision, and released a statement saying: "The internet is meant to express the free flow of ideas and enhance commerce. This is unfair toward those that are legal, licensed lenders and uphold best business practices."

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